How to Open a Company in the USA from India: A Step-by-Step Guide

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So, you’re ready to expand your business and go big in the United States? Opening a company in the USA could be an exciting step that lets you tap into a massive market and grow like never before! I know because I’ve been there myself—not once, but twice.

In 2018, I registered my first U.S.-based company, Titan Dev Squad, as a non-resident LLC. The process opened up a world of opportunities, from improved client trust to streamlined operations in the U.S. market. Inspired by that success, I took the leap again in 2022 to register Designs Valley in the U.S., a strategic move that fueled our growth. Through these experiences, I’ve learned a lot about what works—and what doesn’t—when setting up a U.S. company as a non-resident. Here, I’ll walk you through the exact steps I followed to make it happen.

Why Start a Company in the USA as an Indian Entrepreneur?

Starting a business in the USA gives you access to a huge customer base and a chance to boost your reputation. But why go through the trouble? There are several big reasons that make the USA a smart choice for non-resident business owners like you. Having established both Titan Dev Squad and Designs Valley in the U.S., I can tell you firsthand that this decision opened doors for growth, credibility, and increased revenue.

Access to a Massive Market

The USA has one of the largest consumer markets in the world, which means more potential customers. Setting up your company here gives you the chance to reach people all over the country and grow faster than you might in a smaller market.

A Hub for Global Investment

The USA is home to lots of venture capital firms and investors who want to support businesses that have big ideas. When I first set up Titan Dev Squad in 2018, our U.S. presence helped us gain access to better financing options and gave clients in the U.S. a greater sense of trust in our brand. That’s something that would have been much harder to achieve without a U.S.-based business.

Step 1: Choose the Right Business Structure

Choosing the right business structure is one of the most important steps in setting up your company in the USA. The structure you choose will impact your taxes, liability, paperwork, and the overall management of your business. Here’s a look at the most popular options for non-U.S. residents.

Limited Liability Company (LLC)

An LLC (Limited Liability Company) is one of the most flexible and popular structures for non-residents. It’s known for its simple requirements and liability protection for owners. The LLC structure allows profits to “pass through” to the owners, meaning you only pay taxes once at the personal level rather than at both the corporate and personal levels. This makes LLCs ideal for small to medium-sized businesses and those wanting to avoid double taxation.

When I set up Titan Dev Squad as a non-resident LLC in 2018, this structure provided the perfect balance of legal protection and flexibility. The LLC framework enabled us to operate smoothly and grow without excessive paperwork.

For more information on LLC formation for non-residents, you can read this detailed guide.

Corporation (C-Corp or S-Corp)

A corporation offers more growth options, especially if you plan to raise money from investors or expand in the future. Corporations can issue shares, which makes them appealing to investors and venture capitalists.

Most non-residents choose C-Corps because S-Corps have restrictions on foreign ownership. Although corporations have more formalities and double taxation (at the corporate and individual levels), they are often the best choice if you want to attract investors.

Cost of Registering an LLC as a Non-Resident

The cost of registering an LLC in the USA as a non-resident varies based on your chosen state and any additional services you might need. Here’s a breakdown of some common costs:

  1. State Filing Fees: These range from $50 to $500, depending on the state. Wyoming and Delaware are popular options due to their business-friendly environments and competitive filing fees.
  2. Registered Agent Fees: Since non-resident companies need a U.S.-based registered agent to receive official documents, this service usually costs $100 to $300 annually. If you’re running your business from abroad, a reliable registered agent is a must.
  3. EIN Application Fees: Applying directly through the IRS for an EIN (Employer Identification Number) is free, but you might choose to pay a third-party service to assist with the process if you need extra help.
  4. Annual Compliance Costs: Each state has its own annual fees and reporting requirements, including franchise taxes and annual reports. These costs vary but typically range from $50 to $800 annually.

When I registered Titan Dev Squad in Wyoming, the total initial setup cost, including filing fees and registered agent services, was around $300. In 2022, when we registered Designs Valley in Delaware, we budgeted for Delaware’s slightly higher costs, which were worth it for the state’s strong business reputation and convenience.

Understanding these costs upfront can help you make informed choices and ensure a smooth setup without unexpected expenses. Here’s a resource on choosing the best state for a non-resident LLC here.

Picking the Best State

Your choice of state for registering the business matters. Each state has different tax rates, fees, and compliance requirements. Popular states for foreign entrepreneurs include Delaware, Wyoming, and Florida.

  • Delaware: Known for business-friendly laws and streamlined filing processes, Delaware is favored by large and small companies alike. It’s also a top choice for attracting investors.
  • Wyoming: This state offers low fees, strong privacy protections, and no income tax, making it popular for smaller businesses and startups.
  • Florida: Florida has favorable tax laws and is well-known for being straightforward for small businesses.

Choosing the right state depends on your business needs and budget, so evaluate the costs and requirements of each before deciding.

Step 2: Register Your Business

After picking your business type and state, it’s time to register your company. This means filing the official papers that let your business legally exist in the U.S.

Required Documents

To start an LLC, you’ll need to file Articles of Organization. For a corporation, it’s called Articles of Incorporation. These documents make your company a legal business in the state you picked.

Hire a Registered Agent

Every U.S. business needs a registered agent. This person or company accepts official mail for your business. They’re important, especially if you’re not physically in the U.S. Your registered agent must be located in the same state where you registered your business.

Having gone through this twice, I can vouch for the easier process when you have a reliable registered agent. They helped us stay on top of paperwork and regulatory updates, so we never missed a beat.

For help, look at the best registered agents in Delaware here , in Florida here and in Wyoming here.

Step 3: Apply for an EIN (Employer Identification Number)

Your EIN, or Employer Identification Number, is like a social security number but for your business. You need it to open a bank account, file taxes, and hire employees in the U.S.

Getting Your EIN

Applying for an EIN is easy and can be done online through the IRS. The EIN allows the government to track your business for tax purposes. Even if you don’t have a Social Security Number (SSN), you can still get an EIN. This step was crucial for both Titan Dev Squad and Designs Valley, as it allowed us to set up banking and manage U.S. finances.

Step 4: Open a U.S. Bank Account

Opening a U.S. bank account is essential because it lets you accept payments, pay taxes, and manage your money easily. It also shows U.S. customers that your business is serious and trustworthy.

What You Need to Open a Bank Account

To open a business bank account in the U.S., you’ll generally need:

  • Your EIN
  • Your Articles of Organization or Incorporation
  • A U.S. business address (your registered agent’s address often works)

Find more about banking solutions for non-resident LLC owners here.

For Titan Dev Squad, the U.S. bank account simplified transactions with our U.S.-based clients and helped us establish a smoother cash flow. Later, when Designs Valley expanded, having a bank account ready-made it easier to manage transactions without currency conversion hassles.

Step 5: Understand Your Tax Obligations

Understanding taxes is one of the most important parts of running a business in the USA. The good news is that the USA has tax treaties with many countries, including India, to prevent double taxation.

Key Taxes to Know

  1. Federal Income Tax: Your business only pays taxes on money earned from U.S. customers.
  2. State Taxes: The taxes depend on which state you register your company in. Some states have no business income tax.
  3. Sales Tax: If you sell goods, you may need to collect sales tax depending on the state.

Here’s more on the tax implications for non-resident LLC owners here.

Step 6: Keep Up with Compliance and Renewals

Once your company is set up, you still have to keep up with U.S. laws and paperwork. This includes things like annual reports and franchise taxes. If you don’t keep up, your business could get fines or even lose its legal status.

Staying Compliant

Some states require an annual report with a filing fee to keep your business registered. Some states also have a franchise tax, which is a small fee to keep your company active.

For a complete look at your legal responsibilities, check out compliance for non-resident LLCs here.

Step 7: Market and Grow Your Business in the USA

Congratulations! Your U.S. business is set up and ready to go. Now, it’s time to let people know you exist. Marketing is key to getting customers and growing your company.

Digital Marketing

Using digital marketing helps you reach new customers online, which is especially useful if you’re running your business from outside the U.S. Think about using SEO (search engine optimization), social media, and content creation to attract people to your business.

If you need help, here’s a guide to digital marketing strategies for non-resident LLCs here.

Establishing Titan Dev Squad and Designs Valley as U.S. companies allowed us to grow in ways we couldn’t have achieved without a U.S. presence. By following these steps, you can enjoy the same benefits, setting up a company in the USA that paves the way for international growth and success.

Conclusion

Expanding your business to the USA can be a transformative step, and with the right approach, it’s well within reach for entrepreneurs from India. Setting up Titan Dev Squad and Designs Valley in the U.S. taught me the importance of each step, from selecting the right state to ensuring compliance with U.S. laws. This move helped us build trust with clients, simplify financial management, and unlock growth.

So, if you’re ready to take your business to new heights, consider following the steps outlined here. With careful planning and the right resources, you can confidently enter the U.S. market, attract new customers, and build a powerful presence in one of the world’s most dynamic economies. Now is the perfect time to turn your vision into reality.

Ready to get started? Use the resources linked here to make each step easier and give your business the best shot at success in the U.S.

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